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Navigating the New World of Stakeholder Governance

Board Intelligence Board Report

Discussion on stakeholder governance is often a tussle between the good and the bad, the purpose-driven custodians of the future and the profit-driven old guard. However, this false binary misses a fundamental truth:

Stakeholder governance is just governance.

Governance is defined as the discipline of a well-run organisation — the people, processes, tools, and conventions that comprise the “running” of an effective organisation. Stakeholder governance is simply governance that recognises that today’s license to operate depends on a far larger system of stakeholders. Effective stakeholder governance should not be seen as an exercise in compliance, but as what is fast becoming the most important driver of short and long-term success.

2020 has brought this home to most boards in unimaginable ways. From Covid-19 to Brexit and Black Lives Matter, boards spend more time reacting to external stakeholder forces than influencing them. No board is ever fully in control of events – but stakeholder governance is an opportunity for boards to regain a far greater degree of control than most have today.

The Board Intelligence research reveals most organisations are largely unprepared to fully embrace this opportunity and are exposed to significant personal and organisational risk as a result. This report aims to underline the urgency of effective stakeholder governance, warn against common mistakes, and point you in the direction of successful strategies.

To obtain a copy of the Report click the Download button above.


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